It’s time to reassess your real estate strategy!
If you’re backing off purchasing your dream home because of the tariff threats, then you could be missing a rare opportunity.
If you’re wavering, know that the possibilities of striking a great deal will likely be gone in a year’s time.
Fortune favours the brave, as they say. But you don’t have to be that brave, as the real estate market will return to stability, especially given the recent spate of interest rate cuts.
The Canadian market is transacting at the same levels as mid-2023 when the official interest rate was 5% – almost double today’s 2.75%.
Our national MLS (Multiple Listing Service) suggests that while buyers are cautious, owners are still listing properties – and that means more choice for you.
If your personal circumstances suggest there’s no reason to retreat from the market, you have a great opportunity to either buy your first home or upsize.
Low interest rates and an oversupply of houses and apartments are a rare combination in the Canadian real estate market.
Let’s take a look at the major markets to see how they’re performing.
Toronto – Transactions in April were the lowest for decades. For our major real estate market, this is super-unusual. The only time in memory that it’s been this weak was during the Covid lockdown. Values have dipped almost 5% since December. So, momentum is with the buyer and investor. The average price is $1.07 million.
Montreal – After a double-digit dip in values across January and February, Montreal is starting to hold its own again. MLS data suggests the number of listings is rising. Median prices are higher for single-family homes (+8.7%) compared with 12 months ago. Montreal demonstrates that good buying opportunities do not last forever.
Vancouver – Many homes were listed for the spring market, and that’s dampened prices. House values dropped 1.8% year-over-year in April. This is a buyer’s market currently.
Calgary: Caution has captured Calgary, too. Sales volumes are down to a five-year low and year-over-year values are -1.4% compared with 2024.
The Senior Economist at the Canadian Real Estate Association, Shaun Cathcart, observed the “Canadian housing story would best be described as a return to the quiet(est) markets we’ve experienced since 2022, with tariff uncertainty taking the place of high interest rates in keeping buyers on the sidelines”.
If you are a buyer and confident of your personal circumstances and job security, a rare opportunity beckons. The real estate market will surely return to more buoyant times, and when that happens the good buying opportunities will be fewer.